Day Trading Strategies

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Day trading costs money. Consider all the costs of getting started: buying equipment, paying for Internet access, learning how to trade. Add to those costs the costs of doing business that vary with each[more…]

Because so few opportunities for true arbitrage exist, most day traders looking at arbitrage strategies actually practice risk arbitrage. Like true arbitrage, risk arbitrage attempts to generate profits[more…]

Day Traders use arbitrage tools — derivatives, leverage, short selling, synthetic securities — in many ways to generate profitable trades of stock and other securities. If you decide to do arbitrage, there[more…]

Lots of day traders use arbitrage as one of their strategies for profiting from the stock and securities markets. There are a number of ways to approach arbitrage, including arbitrage in the fixed income[more…]

If you have decided to add arbitrage to your bag of day trading strategies, consider index arbitrage. Arbitrageurs love an asset — like an index — that has lots of different securities based on its value[more…]

Options form the basis of many arbitrage strategies, especially for those day traders who work the stock market. First, many different types of options are available, even on the same security. The two[more…]

One reason that the stock and securities markets are so volatile is that they respond to news events. Prices reflect information, changing when any little bit of information comes into the market — even[more…]

Good day traders set limits. They often place stop and limit orders to automatically close out their market positions when they reach a certain price level. They have profit targets in mind and know how[more…]